Wednesday, October 12, 2016

Saudi Arabia Suspends Oil Aid To Egypt

Oct 12 Egypt's pound has tumbled more than 10 percent to unprecedented lows in the past week after a sudden suspension of Saudi oil aid raised fears of a deeper political rift that could sever the government's much-needed financial lifeline.

Black market traders said they sold dollars at 15 pounds on Tuesday, down from 14.20-14.25 a week earlier. But several importers told Reuters on Wednesday they paid 15.20 to 15.68 to secure dollars amid an acute shortage and plummeting confidence.

The steep depreciation means the gap with the official rate of 8.8 pounds per dollar has widened, increasing pressure on Egypt to devalue its currency and end uncertainty that has discouraged foreign investment.

Egypt has struggled to earn dollars since a 2011 revolt drove away tourists and foreign investors. Its efforts to defend the pound drained reserves from $36 billion before the uprising to $19.6 billion at the end of September.

About Me

I have been involved in numerous computer science projects since the 1980s, as well as developing numerous web projects since 1996.
These blogs are a summation of all the information that I read and catalog pertaining to the subjects that interest me.